Stock Exchange Had Bumper Year, but Failed to Meet Government Hopes

January 8, 1981

Tel Aviv (Jan. 7)

– The Israel Stock Exchange had a bumper year in 1980 but failed to meet Likud government hopes that local industry would raise big capital through share issues.

According to data released by Exchange board chairman Dr. Meir Heth, of the 1,411 million Shekels (about $186 million) raised by new issues last year only 3.3 percent was by industrial concerns (down from 15.4 percent in 1979) while the commercial banks raised 70.9 percent (up from 63.1 percent). Of the 39 emissions floated in 1980 only four were industrial firms which apparently found it easier to raise capital outside the Stock Exchange.

Total exchange turnover was 16,976 million Shekels, compared to 4,379 million Shekels in 1979–an increase of 67 percent when adjusted to allow for some 130 percent devaluation during the year.